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Mizrahi Tefahot buying Union Bank; Egypt lifts forex controls for importers

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Mizrahi Tefahot buying Union Bank; Egypt lifts forex controls for importers

* French President Emmanuel Macron, who is on a three-day tour in Africa, said the future of the CFA franc, used in 14 west and central African nations, was a matter for Africans to decide, adding that he would be open to change the currency's scope despite the stability provided by its peg to the euro, Reuters reported.

* The International Finance Corp., a member of the World Bank Group, said it will invest $100 million in Commercial International Bank (Egypt) SAE to help it boost its capital base. Separately, the IFC said it is investing €15 million in a new private equity fund to help expand access to funding and support the development of small and mid-cap companies in Morocco, Tunisia, Algeria, Egypt and west Africa.

MIDDLE EAST AND NORTH AFRICA

* Mizrahi Tefahot Bank Ltd. agreed to acquire Union Bank of Israel Ltd. through a share swap, Reuters reported. Mizrahi Tefahot will purchase a 75% stake in Union Bank of Israel from its controlling shareholders, while the remaining 25% will be bought through a public offering.

* Bank Hapoalim BM reported third-quarter net profit attributed to shareholders of 469 million Israeli shekels, down from 699 million shekels in the year-ago period, on the back of expenses relating to a tax investigation in the U.S. and the bank's exit from Switzerland.

* The Israel Securities Authority said Shmuel Hauser will step down as chairman in January 2018, Reuters reported. Israeli Finance Minister Moshe Kahlon nominated Anat Guetta, who most recently served as CEO of proxy advisory firm Entropy Financial Research, to replace Hauser.

* Fitch Ratings affirmed Israel's long-term issuer default ratings at A+ with a stable outlook, citing the country's strong external finances, robust macroeconomic performance and solid institutional strength.

* Fitch said its banking sector outlook for the Gulf Cooperation Council for next year is negative, on expectations that the asset-quality metrics of the region's banks will deteriorate slightly as credit growth decelerates due to weak economic growth.

* The Saudi government released a number of high-profile individuals detained as part of the country's anti-corruption crackdown, The Wall Street Journal reported. The individuals, who face charges ranging from money laundering and bribery to procurement fraud, were given the option by authorities to relinquish part of their wealth in exchange for freedom or go to court.

* The Shura Council, a top advisory council to the Saudi government, is looking at proposals to protect individuals who report financial crime, Reuters reported.

* The Saudi Arabian Monetary Authority lifted the ban on Ajyad Al-Khaleej Insurance Co. from issuing or renewing mandatory auto insurance policies. The SAMA banned Ajyad Al-Khaleej Insurance and three other agencies from issuing and renewing auto insurance policies in August.

* The UAE Insurance Authority asked the government to not apply valued-added tax on policies issued before 2018, as companies will not be able to claim the VAT from clients, Argaam reported.

* Al Hilal Bank PJSC appointed Sebastian Frederiks new head of global markets and financial institutions and Wael Alashqar head of financial institutions for the Middle East and North Africa region, the Emirates News Agency wrote.

* The international private bank of Barclays Plc, which is said to be evaluating a potential return to the Asian market, is also focusing on the Middle East, with plans to add another seven bankers to the 14 it already employs in Dubai, insiders told the Financial Times.

* Data from the Qatar Central Bank showed that slowing deposit outflows from Qatari lenders has reduced the need for the government to aid banks, Reuters reported. Foreign customers' deposits in Qatari banks amounted to 137.7 billion Qatari riyals in October, down by only 5.1 billion riyals from a month earlier. This compares to declines of 6.2 billion riyals in September, 8.2 billion riyals in August, 13.4 billion riyals in July and 14.0 billion riyals in June.

* The Central Bank of Egypt lifted limits on deposits and withdrawals of foreign currency for importers of non-essential goods, its last remaining official currency controls imposed following the 2011 uprising that removed President Hosni Mubarak from power, Bloomberg News reported. The central bank had imposed a limit on deposits of $10,000 per day and $50,000 per month, and a limit on withdrawals of $30,000.

* Attijariwafa Bank SA reported net income group share of 4.1 billion Moroccan dirhams for the nine months ended Sept. 30, a 15.8% increase from the same period a year earlier.

* La Mutuelle d'Assurance des Transporteurs Unis will outsource the management of its assets amounting to roughly 2 billion Moroccan dirhams to allow itself to focus on its core business of underwriting, claims management and after-sales service, the Middle East Insurance Review wrote.

EAST AND WEST AFRICA

* Bank of Ghana Governor Ernest Addison said five commercial banks have already met the new minimum capital requirement of 400 million cedis ahead of the deadline, Joy Business wrote. Addison also stressed that the regulator will be flexible in implementing the new capital requirement of 1 million cedis for rural banks, Citi Business News reported. He added that the central bank will not object to a potential merger of National Investment Bank Ltd. and Agricultural Development Bank Ltd. to create a national development bank.

* Bank of Kigali Ltd. shareholders will meet Dec. 6 to vote on the lender's plan to raise $100 million in fresh capital, The East African wrote.

CENTRAL AND SOUTHERN AFRICA

* Moody's placed on review for downgrade the Baa3 long-term deposit ratings of Standard Bank Group Ltd. unit Standard Bank of South Africa Ltd., FirstRand Ltd. unit FirstRand Bank Ltd., Barclays Africa Group Ltd. unit Absa Bank Ltd., Old Mutual Plc unit Nedbank Ltd. and Investec Ltd. unit Investec Bank Ltd., citing the potential weakening of the South African government's credit profile and the challenging operating environment due to the country's weak economic growth.

* Moody's also placed on review for downgrade the Aa1.za long-term national scale issuer ratings of Development Bank of Southern Africa, Land & Agricultural Development Bank of South Africa and Industrial Development Corp. of South Africa Ltd., among other ratings.

* Zambia's Treasury Secretary Fredson Yamba said his country hopes to secure a $1.3 billion loan deal with the IMF early next year, Reuters wrote.

* Mozambican Finance Minister Adriano Maleiane called on banks to cut high annual lending rates of about 30% and urged them to publish the criteria they use for establishing interest rates in order to boost transparency and credit to local companies, O País wrote.

* Banque Internationale du Cameroun Pour l'Epargne et le Crédit denied reports that CEO Alain Ripert has resigned, Financial Afrik wrote.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: China to impose higher banking penalties; Indostar Capital shelves M&A talks

Europe: Banks pass BoE stress tests; SocGen to cut jobs; $2B offer for BBVA Chile stake

Latin America: Scotiabank offers $2.2B for BBVA Chile stake; Grupo Aval Q3 profit slides

North America: Hiring freeze at CFPB; Scotiabank offers $2.2B for BBVA Chile stake

North America Insurance: Insurers oppose essential benefits plan; reinsurers' combined ratio worsens

Leo Magno, Henni Abdelghani, Sophie Davies and Helen Popper contributed to this report.

The Daily Dose Middle East and Africa has an editorial deadline of 5 a.m. London time. Some external links may require a subscription.